Supply chain efficiency

Your supply chain partnership will only work effectively if certain key issues are dealt with. First and foremost, you should be satisfied that your suppliers comply with any applicable environmental legislation.

If they don't it could have a direct impact on your business - for example if your business handles products or uses packaging that does not comply with environmental or safety requirements. It could also have an adverse impact on your reputation with customers and your own employees.

Complying with legislation is the minimum standard but other areas to concentrate on include:

• policies to minimise waste such as reduction, reuse and recycling
• improving water efficiency
• ensuring that packaging is minimised and what packaging is used can either be recycled, recovered or reused
• working on product and service design to improve environmental performance
• improving energy efficiency
• using transport efficiently, eg cutting down deliveries, using more efficient transport, eliminating unnecessary journeys
• warehousing - just-in-time manufacturing reduces inventory, which in turn has cost benefits and reduces the likelihood of waste through over-ordering
• introducing information technology that enables you to communicate more efficiently with suppliers and customers
• product returns - having a quality-control agreement with your supplier can cut down on the number of faulty, damaged or unsuitable goods delivered, which also reduces waste and prevents unnecessary delivery and re-delivery costs